JSW Energy said it will take over 100% stake in GMR Kamalanga Energy Ltd (GKEL) for Rs 53.21 billion. GKEL is business unit of GMR Infrastructure that houses the 1,050 mega-watt (MW) thermal power plant in Odisha.

As part of its strategy for expansion and consolidation in the power sector, the company is actively evaluating various strategic assets for acquisition.

The company said, ''After the acquisition, JSW Energy's installed power generation capacity would reach 5,609 MW. About 84% of the power plant's capacity supplies electricity to Odisha, Haryana and Bihar under long-term power purchase agreements. It also has adequate coal supply arrangements from nearby mines, reducing fuel costs and resulting in lower risks of under-recoveries.''

The deal will help GMR Infrastructure reduce its debt to PSU banks like SBI, IDBI, Canara Bank and UCO Bank. Consequent to the acquisition, GKEL will be a 100% subsidiary of the JSW Energy.